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Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of pesos) Assets Year 2 Year 1 Current assets: Cash ........... P 140 P 130 Accounts receivable 160 140 Inventory .... 170 150 Prepaid expenses 90 90 Total current assets... 560 P 510 Plant and equipment, net 840 900 Total assets ....... ..... P1.400 P1,410 Liabilities and Shareholders' Equity Current liabilities: Accounts payable . P 150 P 150 Accrued liabilities ....... 60 60 Notes payable, short term.. ...... 60 60 Total current liabilities .... P 270 P 270 Bonds payable.... 230 270 Total liabilities...... P 500 P 540 Stockholders' equity: Preferred share, P100 par value, 5%... 200 200 Common share, P1 par value.... 100 100 Additional paid-in capital-common share 100 100 Retained earnings.... 500 470 Total shareholders' equity .... P 900 P 870 Total liabilities & shareholders' equity ... 21.400 21.410 Statement of Comprehensive Income For the Year Ended December 31, Year 2 (in thousands of pesos) Sales (all on account) ......... P1,370 Cost of goods sold .... 800 Gross margin .... 570 Selling and administrative 439 Net operating income.... 131 Interest expense.... 31 Net income before taxes . 100 Income taxes (30%) 30 Net income.... 70 Dividends on common stock during Year 2 totaled $30 thousand. Dividends on preferred stock totaled $10 thousand. The market price of common stock at the end of Year 2 was 94.86 per share. 19. The gross margin percentage for Year 2 a. 12.3% b. 41.5% C. 71.3% d. 81. 43% 20. The earnings per share of common stock for Year 2 a. P0.60 b. PO.70 c. P1.00 d. P1.31 21. The price-earnings ratio for Year 2 a. 3.71 b. 4.86 C. 6.94 d. 8.10 22. The dividend payout ratio for Year 2 a. 42.9% b. 50.0% c. 66.7% d. 833.3% 23. The dividend yield ratio for Year 2 a. 2.06% b 6.17%. c. 8.23% d. 75.00% 24. The return on total assets for Year 2 a. 4.98% b. 5.00% c. 6.53% d. 6.55% 25. The return on common stockholders' equity for Year 2 a. 6.78% b. 7.91% c. 8.76% d. 10.22% 26. The book value per share at the end of Year 2 a. P0.60 b. P7.00 C. P9.00 d. P14.00 27. The working capital at the end of Year 2 a. P290, 000 b. P560, 000 c. P840, 000 d. P900, 000 28. The current ratio at the end of Year 2 a. 0.36 b. 0.40 c. 0.89 d. 2.07 29. The acid-test ratio at the end of Year 2 a. 1.11 b. 1.21 c. 2.07 d. 1.44 30. The accounts receivable turnover for Year 2 a. 1.14 b. 8.56 c. 9.13 d. 9.78 31. The average collection period for Year 2 a. 30 days b. 37.3 days c. 40.0 days d. 42.6 days 32. The inventory turnover for Year 2 a. 4.71 b. 4.88 c. 5.00 d. 5.33 33. The average sale period for Year 2 a. 68.48 days b. 73.0 days c. 74.80 days d. 77.5 days 34. The times interest earned for Year 2 a. 2.26 b. 3.23 c. 4.23 d. 6.04 35. The debt-to-equity ratio at the end of Year 2 a. 0.26 b. 0.32 c. 0.56 d. 0.71
